Property Taxes: Not All Suburbs Are Equal.

The Pioneer Press cites a report that in 2004, metro-area residents paid one-third more of their personal income in property
taxes than residents in the rest of the state.

Most Minnesotans would agree this isn't fair. Add to the unfairness that property taxes are rising overall because of reduced state aid to local governments, and it's no wonder property tax relief was one of the issues both parties said they wanted to fix last legislative session.

So why didn't they? Because a giant philosophical fault line underlies the agreement

From a progressive viewpoint, property tax reform must address this question: How do we assure roughly equivalent government services statewide while reducing disparities between individuals' tax levels and abilities to pay? That suggests relying more on other types of taxes and sharing prosperity.

The fix is simpler from a conservative perspective. You cut taxes and government — and let local communities fend for themselves. But as the story by reporter Bill Saulsbury suggests, that's not working for a number of aging suburban communities with neither the tax base to fund their needs nor the political clout to pull in shrinking state funds.

The 2007 tax bill that would have provided increased aid to local governments — and helped lower property taxes — was vetoed by Gov. Tim Pawlenty, who has heard from upset officials in Minneapolis, St. Paul and many cities outstate. But few
suburban officials complained, says the story, because there was little in the bill for them anyway.

Meanwhile, hostility against property taxes is rising and local governments have fewer tools available to develop local fixes.

Read the article for a good overview of the developing suburban tax squeeze. This issue isn't going away.

Comments

The Pioneer Press cites a report that in 2004, metro-area residents paid one-third more of their personal income in property
taxes than residents in the rest of the state.

Most Minnesotans would agree this isn't fair. Add to the unfairness that property taxes are rising overall because of reduced state aid to local governments, and it's no wonder property tax relief was one of the issues both parties said they wanted to fix last legislative session.

So why didn't they? Because a giant philosophical fault line underlies the agreement

From a progressive viewpoint, property tax reform must address this question: How do we assure roughly equivalent government services statewide while reducing disparities between individuals' tax levels and abilities to pay? That suggests relying more on other types of taxes and sharing prosperity.

The fix is simpler from a conservative perspective. You cut taxes and government — and let local communities fend for themselves. But as the story by reporter Bill Saulsbury suggests, that's not working for a number of aging suburban communities with neither the tax base to fund their needs nor the political clout to pull in shrinking state funds.

The 2007 tax bill that would have provided increased aid to local governments — and helped lower property taxes — was vetoed by Gov. Tim Pawlenty, who has heard from upset officials in Minneapolis, St. Paul and many cities outstate. But few
suburban officials complained, says the story, because there was little in the bill for them anyway.

Meanwhile, hostility against property taxes is rising and local governments have fewer tools available to develop local fixes.

Read the article for a good overview of the developing suburban tax squeeze. This issue isn't going away.